Home / Knowledge / News / Textiles / Hike in export tax rebate unlikely to impact VSF market
Hike in export tax rebate unlikely to impact VSF market
11
Jul '08
According to recent reports, export tax rebate on viscose fiber is likely to undergo major adjustments after which the rates may increase by 10 to 15 points.

Earlier it was informed that export tax rebate rate on textiles would increase by 2 percentage points while that for garment would increase by 4 percentage points.

In a way, it may benefit the viscose market by stimulating fibre prices which may in turn change the declining trend and bring about certain amount of profitability.

Previous data shows that since July last year when export tax rebates on viscose fiber were reduced to 5 percent, VSF exports of China have reduced substantially. Besides, RMB appreciation, rising prices of raw materials, slowdown in international economy and other factors have also played a major role in hampering VSF exports.

In the month of May this year, 6782.69 tons of VSF was exported by China registering a year-on-year decline of 24.23 percent. Export volume of viscose filament for the month amounted to 3613.4 tons, down by 24.15 percent or 1150.5 tons than the previous month and by 40.35 percent or 2444.77 tons over the corresponding period last year. In terms of value, exports amounted to US $16.6938 million, representing an annual decline of 23.13 percent.

Experts have voiced a common feeling that drop in viscose fiber is largely due to excessive supply of the raw material in the market. Therefore an increase of export tax rebate on viscose fiber is likely to have little or no impact on prices. They also believe that even with a support policy, it will be difficult to change this downtrend in a short period of time.

Fibre2fashion News Desk - China

Must ReadView All

Courtesy: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search